Hashrate Asset Group (HAG) has built the world’s first sustainable, compliant and transparent Bitcoin standard arithmetic operating model. The main difference between HAG token and most other cryptocurrencies in the market is that HAG has been filed with the SEC and is regulated by the SEC. Therefore, HAG token is a fully compliant security token. In a recent internal discussion, HAG CEO Harvey Chen and CFO Joe Su shared team insights into why HAG chose to pursue SEC-filed status for the upcoming STO and how HAG overcame the challenges to become the first SEC-filed project focusing on Bitcoin mining in the industry.
1.Can you please give a brief Introduction about Hashrate Asset Group (HAG), and explain a bit about how it works?
HAG (Hashrate Asset Group) provides a way to invest in Bitcoin by hashrate ownership, which offers the security and compliance typically only available to institutional investors. The HAG Token is a security token compliant with US securities laws. Each HAG Token represents 1 terahash of perpetual mining hashrate for the underlying Bitcoin digital asset. That is, buying HAGs means directly having Bitcoin mining access. Token holders receive monthly dividend payments in the form of WBTC, based on the amount of HAG Tokens they hold. After deducting basic operating costs such as electricity, 70% of net yield are distributed to investors, while the remaining 30% is used for maintenance and upgrades of the mining equipment to ensure the perpetual level of hashrate.
2.Why did HAG decide to pursue SEC-filed status for the STO?
We have seen too many scams in the world of cryptocurrency. The incomplete regulation and related laws have given scammers too much opportunity. This is not only a problem of financial loss for investors, but also a harm to the entire Web3 industry, which leads to misunderstandings and prejudices against blockchain technology. HAG has chosen to become a SEC-filed security token to provide investors with a secure and compliant investment method that can be trusted, and to set a positive example for the long-term development of the cryptocurrency industry.
3.As we know, HAG is the first SEC-filed project that focus on Bitcoin mining, you would must meet some challenges or obstacles, so can you please share with us what are the kind of difficulties you faced in achieving in this status?
I believe the biggest challenge lies in the legal document aspect. Unlike general cryptocurrency projects, there is almost no legal or compliance work involved. HAG has filed with the SEC and is about to complete the PPM and make it public. Even though HAG’s offering is not as strict as IPO, you can understand this process similar to a publicly listed company issuing stocks, which has extremely strict legal and internal control requirements. Our management team must go through due diligence on personal information carried out by lawyers. We have also engaged professional consulting firm – Magic Circle to help us complete the tedious but necessary legal document preparation. As the first security token anchored to Bitcoin mining hashrate, HAG is fully compliant and under the regulation of the SEC.
4.We know you announced that HAG will partner with INX for the upcoming STO, can you please walk us through the decision-making process for selecting INX as your partner for the STO?
The main factors for choosing INX are security and compliance. INX has launched the world’s first fully regulated platform that brings together investment and trading of security tokens, cryptocurrencies, and fundraising services, providing a secure and reliable way for compliant trading of various asset classes. To be specific, INX made history in 2021, when it became the first SEC-registered digital security IPO – closing with $83.6 million in gross proceeds from over 7,300 retail and institutional investors. INX is a leader in this field and shares our steadfast pursuit of compliance. Choosing to collaborate with INX for STO issuance is in line with our commitment to security and compliance.
5.What specific features or benefits of INX’s platform made it the best choice for HAG’s needs?
First and foremost, the most important factor is the security and compliance that I mentioned earlier. We will work with INX to protect the legitimate rights and interests of investors.
Secondly, INX has extensive experience: their team consists of senior professionals in business, finance, and technology, with a common vision of redefining the world of regulated security token and cryptocurrency trading. INX completed the first SEC-registered digital security IPO in 2021. In the field of Security Tokens, INX is both a pioneer and the most experienced professional.
Thirdly, INX is investor-friendly: HAG greatly lowers the threshold for individual investors to invest in Bitcoin mining by anchoring perpetual hashrate. To ensure this convenience and good user experience, we fully trust INX’s professionalism. INX promises to provide high-standard, high-quality products, competitive prices, and excellent customer service.
Lastly, INX has global resources: INX has gained reputation and recognition worldwide, and established independent regional communities in Europe, America, Asia, etc., with high user activity and loyalty. HAG hopes to fully leverage INX’s community resources to hold more attractive online and offline events to enrich the investor experience. In addition, INX’s industry network allows us to connect with more like-minded project parties to jointly explore the depth and breadth of Bitcoin investment.
6.Can you discuss the potential benefits of investing in Bitcoin through hashrate ownership compared to other forms of cryptocurrency investment?
First, let’s compare Bitcoin with other cryptocurrencies. Undoubtedly, as the fundamental asset of the crypto world, Bitcoin has the longest history, the strongest consensus, and has been the highest APY investment product for 10 of the past 12 years. No other cryptocurrency possesses these advantages, and investing in and holding Bitcoin long-term is a sound investment approach.
Next, let’s compare buying Bitcoin with Bitcoin mining. We conducted a market survey and found that, starting from 2014, mining has consistently generated higher returns compared to directly purchasing Bitcoin with the same initial capital. The return on investment from mining is nearly four times higher. We also compared the performance of some Bitcoin mining company stocks in the market, and found that they perform even worse than directly purchasing Bitcoin. When Bitcoin price surges, stocks rise less. However, when Bitcoin price plunges, stock prices fall more dramatically. Therefore, participating in Bitcoin mining is the best way to invest in Bitcoin.
Finally, let’s compare HAG with other cloud mining products. Holding HAG means owning corresponding perpetual computing power, supporting large-scale long-term investment, and being able to trade on the secondary market at any time. To capture the most appreciation on investment value, investors usually need longer term. These are things that cloud mining products cannot satisfy. They usually involve small amounts of short-term investments that cannot be traded, and their prices are highly impacted by both hashrate and Bitcoin price fluctuation. In fact, HAG appreciates all the players in the industry to make the future of digital assets closer and believes ourself could be the key to make such future even closer.
7.How do you see the future of the cryptocurrency industry evolving in terms of regulation and compliance?
In the increasingly strict regulatory environment for the cryptocurrency industry by the SEC, we believe compliance will become a trend in the industry if we want to bring mass adoption. In 2022, people have already witnessed the bankruptcy of several Web3 companies and groups, and no one wants these things to happen repeatedly. HAG envision ourself to setup a model in industry and strike a sustainable balance between digital-asset development and compliance. It is imperative to establish a standardized and regulated cryptocurrency investment system.
8.Can you share any exciting upcoming developments or plans for HAG that you are particularly excited about?
Currently, our main focus is on ensuring a successful STO launch and rewarding early investors who joined our community through the OG system. Moving forward, we plan to actively collaborate with investors, communities, and projects, including but not limited to other security token offerings, DeFi projects, and more. We believe the LSD track, which was created due to the Ethereum Shanghai upgrade, is very intriguing, and stETH has become a basic interest-bearing product in the Ethereum ecosystem. HAG wants to play a similar role in the Bitcoin ecosystem. We will continue to monitor industry trends and explore more Bitcoin investment opportunities.
Summary
HAG aims to enable investors to invest in Bitcoin mining in a secure way through legitimate and compliant means, which is why they have chosen to issue the first SEC-filed STO on Bitcoin mining. Although this means preparing more detailed and rigorous legal documents and undergoing stricter scrutiny, HAG remain committed to their stance on compliance. Without adequate regulatory measures, the credibility of the crypto market is likely to take a bigger hit, leaving only scammers and speculators, which is not in line with their vision for cryptocurrency and Web3. Embracing compliance is the key to maximizing the protection of investors’ rights, and HAG firmly believes in this.
About Hashrate Asset Group
Hashrate Asset Group aspires to build the world’s first sustainable, compliant and transparent Bitcoin standard arithmetic operating model. HAG Token allows investors to join the ecosystem and receive a real-time return on your investment. HAG mining farm is located in the United States, and the team is composed of industry-leading professionals from Bitmain, Goldman Sachs, and TSMC.
Website: https://www.hagsto.com/
Twitter: https://twitter.com/HashrateAsset
Telegram: https://t.me/HashrateAsset
Company: Hashrate Asset Group
Contact Person: Alpaga YANG
Email: contact@hagsto.com
Website: https://www.hagsto.com/
Telephone: +65 80388730
City: Singapore
